S&P changes Egypt view

S&P said it revised the outlook on Egypt to positive from stable and affirmed the B-/B long- and short-term foreign and local currency sovereign credit ratings.

The agency said the positive outlook reflects the potential that S&P may raise the ratings over the next year if Egypt continues to implement structural reforms to support investment and GDP growth, if external weaknesses abate and if further progress is made in improving the effectiveness of the monetary framework.

The latter could occur should inflation descend from current high levels, enabling the Central Bank of Egypt over time to set interest rates more freely so as to influence demand and prices, S&P explained.

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